Apple Hard to Swallow

By

Timothy Collins

| Jan 25, 2013 | 11:22 AM EST

It has become clear that all the brokerage houses defending Apple (AAPL) are doing very little in the way of buying. It may be that AAPL grew to such a size that it was no longer defendable by Wall Street. Another leg down isn't a huge surprise here, though I thought a pin at $450 was on the table today. We've had the initial $5 push higher to shake out some of the put players, and now we are seeing the $5 push lower, in theory, to shake out the out-of-the-money call players. This still sets up for a $450 pin, but the weakness is so pervasive in AAPL that a flat day may be the best the bulls can hope for here. Many argue that AAPL is a longer-term story, and I agree, but it is very difficult for those who now feel trapped in this name and hopelessness has set in. I talked with a friend who works for AAPL and, while disappointed, he is still excited about the opportunity in front of AAPL.

Microsoft (MSFT) came out with a less-than-wowing report. I've closed the earnings trade at $0.65, which was a loss from the $0.79 entry. Unfortunately, I missed the quick exit earlier today for a small profit as the action was a bit hectic on the open, creating wider spreads and tougher execution. The stock came back a bit quicker than I expected, dampening the opportunity for profit....195 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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